TypeRS

After putting $10,000 down, I'm currently paying $390/mo for the remaining 55 months i have left, which the interest rates are 6.9% which is somewhat high. At the time of signing, I had my mom co-sign cuz i lack enough credit (i have perfect credit...i make all my payments on time and in full...just not enough credit).

I'm thinking of refinancing in the coming months. You think i can get my interest rates down to 3.9% at least? Should I even bother? Since buying my car, ive been working full time. I'm switching jobs next month to work for autobytel.com btw...

For those who have refinanced, how should I go about this process? I'm with American Honda Financing right now.

foolioness

6.9%? That's a bit too high..... anyhow.. I think it is almost not worth it to refinance now because the rate will be high anyway for refi. I was thinking about it too but I'll end up paying more at the end of the loan.
If you want to give it a try.... go to www.capitaloneautofinance.com I got my finance from them. They give me a lower rate than any other banks.
Hope this helps

DJDZ

Hey Ray!!

I doubt that a bank or other financial institution will likely beat that rate because you would then be refinancing a used car with another lender. Thus, it is a more risky deal for the lender that pays off Honda finance and therefore interest rates will likely be higher than what you have right now. Just think of it this way. Keep up you payments and when you buy your next car, you can get a better rate because you will have a good payment history of paying off long-term debt.

curls

Refinancing won't get you a better rate by any decent margin.

New cars use lower rates to attract buyers -- most companies lose money (or break even or thereabouts) on financing for the sake of selling a car.

Pplus, 6.9% - 3.9% sounds like a lot but won't be more than maybe $800-$1000 by the end... over a monthly payment schedule it won't be much at all - maybe $20/month tops.

If you really want to do yourself a favour, pay lump sum payments to the principal of the loan and thus pay off the loan faster and have the car fully in your ownership sooner.

~Eric

Zasker1

As rates have risen, I think you will be hard pressed to beat that rate as most of the major banks are hovering between 6-8% right now on a refi. Even BECU (Boeing Credit Union) lowest rate is 5.5% but you would have to be at about a 710+fico to qualify for that. You may want to check out an amorization chart, but you are looking at paying around 3700 in intrest over the life of the loan, if you refi you will reset the payment plan and forfit about 700 you have already paid in intest. Since you have only realy paid off around 1500 in principal the only thing that refiing is going to net you is a 45 day window of no payment while the old loan closes and the new one begins. Even if you could refi at say 6% at 18500 balance you would drop your payments about 30/month, howerver it would take 2 years to break even as you would once again have 5-6 months where the maximum amout of money is deflected to pay intrest rather than principal.

If you go to the below url and click on calculators on the right hand side you can get a feel for how amorization works:
http://www.becu.org/default.asp?pid=autoloans

Alin10123

I dunno, 2 years ago when i bought my used bmw 540 with some miles on it, i got a rate of 4.75 for 5 years. So... it's possible to get a good rate. Most bank wont charge a fee to refinance since they just want the business. I would definately try.

arch

IMO it doesnt hurt to shop around. Check with local bank branches such as Chase, JP Morgan, Bank of America. Im financed through American Honda as well, but I shopped around after I bought the car to other banks to make sure I got the lowest apr possible.

TSX2345

Shop around, call whatever financial institution you belong too and see what the rates are. I had a re-approved loan when I went shopping for my TSX 4.5%

JoesTSX

[QUOTE=TypeRS]After putting...
Off subject but your PM recieving mailbox is too full. Try deleting a message or two so I can PM you.

Powered by Honda

if you refinance with a bank expect to pay 8-10%.

gsrthomas

If it saves you money, do it!

My mom and my sister refinanced their auto loans and they saved lots of money!

My mom didnt save much. Maybe only $800 throughout 5 years. But who cares, the refi was free.

My sister refinanced and she saved around $2k.

But these refinances are within the first month of owning the car.